Asia Pacific office assets to see strong growth
The Asia Pacific region experienced a temporary economic lull in 2014 but is expected to gain momentum in the next five years, according to a recent report published by Deutsche Asset & Wealth Management.
The office sector accounted for nearly half of transaction volume in 2014, according to Real Capital Analytics. Commercial real estate transaction volumes in the Asia Pacific region posted an 18 percent increase from 2013 to 2014 and should continue to rise through this year. Popular developed markets such as Japan, South Korea and Australia are expected to experience further cap rate compression.
Japan, China and Singapore experienced moderate improvements in their leasing markets in 2014. Office leasing demand has remained generally healthy, with all key countries in the Asia Pacific region, except Australia, maintaining low unemployment rates. During the next five years, Beijing and Shanghai are forecast to have rental growth, while Brisbane and Perth, Australi